Core Insights - The company reported a revenue of 10.6 billion yuan for the first half of 2025, a year-on-year increase of 4%, but the net profit attributable to shareholders decreased by 20% to 400 million yuan [1] - In Q2 2025, the company achieved a revenue of 5.6 billion yuan, a slight decline of 1% year-on-year, with a net profit of 240 million yuan, down 26% [1][2] - The company is focusing on AI education and robotics, with significant growth in its AI education products and the launch of its self-developed industrial robot [3] Financial Performance - For 1H25, the company’s gross margin was 20.4%, a decrease of 2.1 percentage points year-on-year, remaining stable compared to Q1 [2] - The sales expense ratio, management expense ratio, and R&D expense ratio decreased by 0.9 percentage points, 0.6 percentage points, and increased by 0.3 percentage points year-on-year, respectively [2] - The company’s non-recurring net profit margin for 1H25 was 2.7%, down 2 percentage points year-on-year, primarily due to changes in the financial structure [2] Business Segments - The smart control components segment generated revenue of 54.97 billion yuan, an increase of 11% year-on-year, with significant growth in household appliance controllers [2] - The smart terminal and application segment saw a revenue of 48.4 billion yuan, a decrease of 2% year-on-year, mainly due to a weak enterprise market [2] - The education business within the smart terminal segment grew by 14% year-on-year, with total revenue of 1.72 billion yuan in 1H25 [2] Future Outlook - The company expects net profits attributable to shareholders to reach 890 million yuan, 1.19 billion yuan, and 1.44 billion yuan for 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 33X, 24X, and 20X [3] - The company is actively promoting its AI education products, with significant market penetration and user engagement [3] - The robotics business is expanding, with the launch of the MAXSUB-X7 robot and growth in commercial cleaning robots in international markets [3]